Hedge Fund Asset Flows Report – March 2019

About the Report

Over 2,000 hedge fund firms submit data about their products to eVestment every month, including performance, assets, strategy details, primary investment markets and regional focuses. The calculated asset flows for these products provide the basis for estimating the distribution and flow of assets through the broad hedge fund industry.

As you are looking to supplement your own research with external sources, the kind of data provided in this report can help you to form an opinion about an asset class or follow the continuing, or emerging trend as you are developing the allocation decisions for your portfolio.

Investors Show Dissatisfaction with Underperforming Products with Elevated Redemptions

The outflows in March 2019 were enough to push Q1 into negative territory, which also made Q1 2019 the fourth consecutive quarter of redemptions for the industry.

Despite this aggregate negativity, we continue to see funds and segments receiving new allocations. Additionally, we see evidence of demand from US public plans via eVestment’s MarketLens information. From these perspectives, the current state of flows appears to be less of a “hedge fund industry” issue and more of a performance issue.

Report Highlights:

  • Investors redeemed an estimated $13.69 billion from hedge funds in March, and $14.92 billion in Q1 2019.
  • Q1 outflows were the fourth consecutive quarter of redemptions from the industry.
  • The bulk of Q1 outflows came from large macro, long/short equity, and managed futures funds which produced negative results in 2018.
  • EM hedge funds had inflows in Q1. Allocations were mostly targeted toward China-focused strategies.

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